Potential problem co-owning with brother

pollyanna24

I own a house with my brother that we both live in.

He has recently got engaged and I am wondering about the situation I find myself in.

He wants to save up money and buy a house with his fianc!e in a couple of years. In the meantime, he wants to move her into our house. I’m not overly happy, but at the same time, not devastated. Not quite sure why they want to do this as she owns her own flat and I have two small children. She currently rents out a room in her flat and is planning on renting out the whole flat in order to make money to save up for a deposit on a new house.

Just wondered what I get out of this? They (brother and fianc!e) will make money from the rent of her place, but I just get an extra person living in my house?

How should we split mortgage and bills? Will she have any claim in my house?

Currently me and my brother overpay the mortgage, but I was going to suggest not doing this any more so that he has more money towards the deposit on the new house. I am hoping that he doesn’t want us to just sell up as there is no way I can afford to take on the mortgage myself. I can afford the monthly payment, but the bank wouldn’t let me take it on. Plus I don’t have the £70K to buy my brother out.

When/if they decide to move out, I was going to suggest that we draw up a Trust Deed stating how much percentage my brother owns of my house and I take over paying the whole mortgage payment and my brother staying on the deeds.

Is this the best way to deal with it? What advantages/disadvantages are there to this?

I know realistically my brother could just turn round and want his equity out of the property to set up home with his fianc!e, and I know it sounds like I’m turning the situation into what will be best for me, but I just don’t what other options I have. He always said he would view my house as an investment when he bought into it, and I’m hoping this won’t change now that he has a potential family himself.

peachyprice

Have either you or your brother realised that he won't be able to get another residential mortgage while he still has one with you?

pollyanna24

peachyprice wrote: »

Have either you or your brother realised that he won't be able to get another residential mortgage while he still has one with you?

This was something I had thought about. Are you only allowed one mortgage?

peachyprice

pollyanna24 wrote: »

This was something I had thought about. Are you only allowed one mortgage?

I order to have two residential mortgages he would have to be earning enough to cover both and many lenders won't give a second residential mortgage, it's easier to have more than one if they are buy to let.

Obviously if he's a very wealthy man he will have no problem getting another mortgage, but if he were that wealthy he wouldn't need another mortgage in the first place.

pollyanna24

Fair enough. Is there any other way around it then? Or is it a case of having to sell up if he decides he wants to buy a house with his fiancee?

She could possibly get a mortgage in her name only?

PasturesNew

pollyanna24 wrote: »

I own a house with my brother that we both live in.

....I have two small children.... Just wondered what I get out of this? ....I just get an extra person living in my house?

Well, it's not "your" house singular.... and he's had you and 2 kids living in "his" house since Day one.

If it'd just been you/him it'd be more annoying ... from his point of view he's probably now getting the benefit of half the house, instead of always feeling outnumbered.

These are things you should have sorted out/agreed on before you bought it. You should have discussed/agreed what'd happen if one or the other of you would be getting a significant other and wanting to change things.

Gigglepig

Sounds like you need a frank discussion with your brother regarding what will happen to the house, it sounds like he may need the equity to buy a family home of his own. If you think you would not be able to keep the house if he takes his equity out, even in a couple of years, and are not keen on housesharing with them, then I would consider selling up right away, just to avoid complications. unless you what you gain in equity in a few years make the inconvenience of sharing a house worth it.

Mojisola

pollyanna24 wrote: »

I own a house with my brother that we both live in.

He has recently got engaged

he wants to move her into our house.

She currently rents out a room in her flat and is planning on renting out the whole flat in order to make money to save up for a deposit on a new house.

I can afford the monthly payment, but the bank wouldn’t let me take it on.

Too late for you but for anyone thinking of buying with a relative or friend, always have the get-out plan written into the agreement!

In your situation, would your brother consider moving into his GF's flat instead? If you are able to continue paying the mortgage on the house, he could start saving his half. Get it in writing about the eventual financial settlement if you start paying the whole mortgage.

pollyanna24

PasturesNew wrote: »

Well, it's not "your" house singular.... and he's had you and 2 kids living in "his" house since Day one.

If it'd just been you/him it'd be more annoying ... from his point of view he's probably now getting the benefit of half the house, instead of always feeling outnumbered.

These are things you should have sorted out/agreed on before you bought it. You should have discussed/agreed what'd happen if one or the other of you would be getting a significant other and wanting to change things.

Um, thanks for that. He bought my ex out of the house when we split, so we didn't decide to buy together. It was decided that was the best thing rather than me sell up and have to rent. And yes, I will forever be grateful for my brother doing that.

I suppose in one way it was delaying the inevitable. I could have sold up when we split, but might have to do it when my brother decides he wants to buy with fiance.

fivetide

Can you do that now? Get brother to buy you out with his fiance and you get a smaller place that is easier on the bills etc?

I appreciate you might not want to move but that could be an option and the house sounds pretty big!

DigForVictory

Congratulations on being able to overpay & please, have a thoughtful, sober chat with brother & a solicitor. You might even want to get your wills updated to reflect & cover the current & proposed arrangements.
Not saying anything bad will happen, but that's why solicitors are worth the money - they can see far more of the possible pitfalls and guide your plans around & past them.